Several Banks Interested in Formation of Black Market - Gubad Ibadoglu

The manat still has not found its real exchange rate and the Central Bank has lost another year, the economist Gubad Ibadoglu said. The expert told Turan that in this regard, "disease" of the manat has an impact on all other sectors of the economy.

“Fears for AZN have increased and the national currency enters the new year with three rates (the rate based on the currency auction, the rate of commercial banks and the exchange rate on the black market),” he said.

Ibadoglu noted that the relevant authorities were not able to eliminate the black market, as the rate at banks is unreal and currency sale is illiberal.

“The most important thing is that commercial banks have themselves become suppliers of currency to the black market, and large foreign exchange transactions are carried out there. The black market is needed by banks and so they are interested in the formation of this market,” said the economist.

According to him, while the real exchange rate of the manat has not been established, the black market will exist.

“Therefore, the relevant authorities instead of spending powers to fight the black market, had better focus on the preparations for the floating exchange rate, since there is no alternative,” he said.   ----71D